OSL Group (HKSE:00863) ROC % : -14.35% (As of Dec. 2023)

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What is OSL Group ROC %?

ROC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROIC %. OSL Group's annualized return on capital (ROC %) for the quarter that ended in Dec. 2023 was -14.35%.

As of today (2024-06-10), OSL Group's WACC % is 12.32%. OSL Group's ROC % is -11.39% (calculated using TTM income statement data). OSL Group earns returns that do not match up to its cost of capital. It will destroy value as it grows.

OSL Group ROC % Historical Data

The historical data trend for OSL Group's ROC % can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

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OSL Group ROC % Chart

OSL Group Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

ROC %

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-18.86

-10.43

-8.33

-18.40

-11.92

OSL Group Semi-Annual Data
	Jun14	Dec14	Jun15	Dec15	Jun16	Dec16	Jun17	Dec17	Jun18	Dec18	Jun19	Dec19	Jun20	Dec20	Jun21	Dec21	Jun22	Dec22	Jun23	Dec23
ROC %	Get a 7-Day Free Trial															-8.66	-20.08	-18.32	-8.67	-14.35

OSL Group ROC % Calculation

OSL Group's annualized Return on Capital (ROC %) for the fiscal year that ended in Dec. 2023 is calculated as:

	ROC % (A: Dec. 2023 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (A: Dec. 2022 )	+	Invested Capital (A: Dec. 2023 ))	/ count )
=	-186.202 * ( 1 - 0.82% )	/	( (1941.249	+	1157.145)	/ 2 )
=	-184.6751436	/	1549.197
=	-11.92 %

where

	Invested Capital		(A: Dec. 2022 )
=	Total Assets	-	Accounts Payable & Accrued Expense	-	Excess Cash
=	Total Assets	-	Accounts Payable & Accrued Expense	-	( Cash, Cash Equivalents, Marketable Securities	-	max(0, Total Current Liabilities	-	Total Current Assets	+	Cash, Cash Equivalents, Marketable Securities	))
=	2514.299	-	89.498	-	( 1009.157	-	max(0, 1767.449	-	2251.001	+	1009.157	))
=	1941.249

	Invested Capital		(A: Dec. 2023 )
=	Total Assets	-	Accounts Payable & Accrued Expense	-	Excess Cash
=	Total Assets	-	Accounts Payable & Accrued Expense	-	( Cash, Cash Equivalents, Marketable Securities	-	max(0, Total Current Liabilities	-	Total Current Assets	+	Cash, Cash Equivalents, Marketable Securities	))
=	1440.786	-	64.984	-	( 218.657	-	max(0, 1045.696	-	1363.227	+	218.657	))
=	1157.145

OSL Group's annualized Return on Capital (ROC %) for the quarter that ended in Dec. 2023 is calculated as:

	ROC % (Q: Dec. 2023 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (Q: Jun. 2023 )	+	Invested Capital (Q: Dec. 2023 ))	/ count )
=	-215.628 * ( 1 - 2.76% )	/	( (1766.102	+	1157.145)	/ 2 )
=	-209.6766672	/	1461.6235
=	-14.35 %

where

	Invested Capital		(Q: Jun. 2023 )
=	Total Assets	-	Accounts Payable & Accrued Expense	-	Excess Cash
=	Total Assets	-	Accounts Payable & Accrued Expense	-	( Cash, Cash Equivalents, Marketable Securities	-	max(0, Total Current Liabilities	-	Total Current Assets	+	Cash, Cash Equivalents, Marketable Securities	))
=	2173.01	-	9.571	-	( 470.936	-	max(0, 1561.49	-	1958.827	+	470.936	))
=	1766.102

	Invested Capital		(Q: Dec. 2023 )
=	Total Assets	-	Accounts Payable & Accrued Expense	-	Excess Cash
=	Total Assets	-	Accounts Payable & Accrued Expense	-	( Cash, Cash Equivalents, Marketable Securities	-	max(0, Total Current Liabilities	-	Total Current Assets	+	Cash, Cash Equivalents, Marketable Securities	))
=	1440.786	-	64.984	-	( 218.657	-	max(0, 1045.696	-	1363.227	+	218.657	))
=	1157.145

Note: The Operating Income data used here is two times the semi-annual (Dec. 2023) data.

OSL Group (HKSE:00863) ROC % Explanation

ROC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROIC %. The reason book values of debt and equity are used is because the book values are the capital the company received when issuing the debt or receiving the equity investments.

There are four key components to this definition. The first is the use of operating income or EBIT rather than net income in the numerator. The second is the tax adjustment to this operating income or EBIT, computed as a hypothetical tax based on an effective or marginal tax rate. The third is the use of book values for invested capital, rather than market values. The final is the timing difference; the capital invested is from the end of the prior year whereas the operating income or EBIT is the current year's number.

Why is ROC % important?

Because it costs money to raise capital. A firm that generates higher returns on investment than it costs the company to raise the capital needed for that investment is earning excess returns. A firm that expects to continue generating positive excess returns on new investments in the future will see its value increase as growth increases, whereas a firm that earns returns that do not match up to its cost of capital will destroy value as it grows.

As of today, OSL Group's WACC % is 12.32%. OSL Group's ROC % is -11.39% (calculated using TTM income statement data). OSL Group earns returns that do not match up to its cost of capital. It will destroy value as it grows.

Be Aware

Like ROE % and ROA %, ROC % is calculated with only 12 months of data. Fluctuations in the company's earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective.

OSL Group ROC % Related Terms

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OSL Group (HKSE:00863) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Technology » Software » OSL Group Ltd (HKSE:00863) » Definitions » ROC %

Comparable Companies

Traded in Other Exchanges

BCTCF:USA 9D2:Germany

Address

33 Hysan Avenue, 39th Floor, Lee Garden One, Causeway Bay, Hong Kong, HKG

Website

https://www.bc.group

OSL Group Ltd is an investment holding company and its primary business is in digital assets and blockchain platforms. business, It provides software-as-a-service (SaaS) solutions, brokerage services, automated trading platforms and insured custody services to institutional and professional investors. It conducts digital asset business through its offices in Hong Kong and Singapore. The Company also has two Mainland China based business segments : an advertising business that provides customized advertising and marketing services to customers in the automotive and other industries, and a business park management division that provides business park operation and management services.

Executives

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Fidelity China Special Situations Plc	2101 Beneficial owner
Yuen Hoi Po	2101 Beneficial owner

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